Biden administration weighs refilling strategic petroleum reserve amidst concerns of rising oil prices.
Originally Published 2 years ago — by Yahoo Finance
President Biden's plan to refill the Strategic Petroleum Reserve (SPR) is in limbo as analysts warn of a potential "supercycle" that could make crude oil too expensive. The administration released 180 million barrels of oil from the SPR last year, which helped reduce U.S. retail gasoline prices. However, oil prices are still higher than the administration's target, and analysts warn that prices will likely remain high for years. Refilling the SPR at a higher price could mean lower profits when the oil is resold later, and waiting until prices fall could put the U.S. at risk in the event of another oil price shock.